Trading Knowledge

Expand the knowledge of trading, improve the level of trade, let you trade confidently, in the series of educational articles provided by Pacific Union.

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Next let’s move on to what is actually traded on the financial markets.

There are essentially two different methods of Trading;

The first is Exchange Based Trading

Trading which is conducted on a centralized, highly regulated exchange

Example:

  • NYSE – New York Stock Exchange
  • NYMEX-COMEX – New York Mercantile Exchange – Commodity Exchange
  • CME – Chicago Mercantile Exchange
  • CBOT – Chicago Board of Trade
  • LSE – London Stock Exchange
  • LME – London Metal Exchange
  • IPE – International Petroleum Exchange

The second is Over the Counter trading (OTC)

A security traded off an exchange, usually directly between banks through a dealer network

Example: The Inter Bank Currency Market, The Derivatives & Bond Markets.

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